April 12, 2021
In partnership with the London School of Economics and Political Science, a new report commissioned by the Charity & Security Network titled “NGOs’ Due Diligence and Risk Mitigation: A Holistic Approach” takes an in depth look at the due diligence and risk mitigation procedures that NGOs have implemented to prevent diversion of funds and assets and adhere to counter-terrorism financing (CTF) laws. The report offers a set of recommendations for NGOs and stakeholders to help ensure that counter-terrorism efforts do not impede the essential work of NGOs.
The report’s findings draw from a literature review of the material on the topic, as well as in-depth interviews with NGOs operating in conflict zones or fragile environments. Through this research, the authors show that NGOs have implemented robust procedures that go beyond the screening, risk analysis and mitigation steps commonly required by financial institutions to ensure compliance with CTF and sanctions laws. The recommendations include increasing multi-stakeholder dialogue, reassessing ‘best practice guidance,’ increasing investment in NGO due diligence and risk management, and increasing coordination around risk management.